New Delhi, March 24: India needs to price oil products rationally as state-run fuel-marketing companies’ revenue loss from selling products at government-mandated prices is expected to rise to Rs 700 billion in the next fiscal from Rs 450 billion this year, the oil secretary said Wednesday.
“Rational pricing of petroleum products is a must. If you don’t do this, it is scary to think what fate awaits oil-marketing companies,” S. Sundareshan said at an event to launch fuel products that meet Euro-IV emission standards.
He said oil-marketing companies have spent Rs 140 billion so far to upgrade fuel products to meet higher emission standards.
The Kirit Parikh committee, appointed by the Prime Minister to study the government’s fuel pricing policy, last months recommended freeing up the pricing mechanism from government control.
There were reports that the Petroleum Ministry favours that decision.
—-Agencies